Under measures included in Finance Bill 2021, the renewal of certain licences, to drive taxis and private hire vehicles or deal in scrap metal, will be conditional on applicants confirmation that they are appropriately registered for tax.

Those sectors coming under licence are:

  • To drive taxis and private hire vehicles (for example minicabs).
  • Operate private hire vehicle.
  • Firms dealing in scrap metal.

Licensing bodies, typically local authorities, will have to obtain confirmation that an applicant has completed the check before making a decision on their renewal application.

These changes will take effect in England and Wales from 4 April 2022

The measure aims to make it more difficult for non-compliant traders to operate in the hidden economy.

Useful guides on this topic

Budget 2021: At a glance
A summary key budget announcements together with items published without announcement.

Budget 2021: Subscriber guide
A detailed guide with links to more detail on all the key topics for SMEs and their owners.

Starting in business? Start here
Our guides for start-ups, registration and planning

Tax Penalties: Failure to notify chargeability
What tax penalties apply if you fail to declare tax?

Policy paper:  'New tax checks on licence renewal applications
July 2020's paper on this licencing